Air France-KLM Group net profit jumps 97% in 2Q
Air France-KLM Group's profit almost doubled in the second quarter as the figure jumped 97% to $1.1 billion in the three months to 30 September. (11/23/2007)
As per the information available, profits were powered by strong demand, especially on longer routes, and by fuel surcharges and hedging which buffered the airline from surging oil prices.
"The result is essentially due to the strength of demand for air transport, which remains very dynamic," said Philippe Calavia, Chief Financial Officer. "We see no sign of a slowdown at this stage - even with the level of oil prices we have today, even with the surcharges."
Sales advanced 5.8 percent to €6.49 billion, Air France said. The company booked a €202 million gain from the sale of stock of Amadeus Global Travel Distribution, the second stage of a leveraged buyout by Amadeus management.
Second-quarter traffic, or the number of passenger flown multiplied by the distance traveled, advanced 6.4% and capacity rose 5.7%, leading to a "slight increase" in load factor - or seat occupancy - to 84.6%.
"Air France has a strong position in the long-haul market and has benefited from the development of Asian economies," reportedly said Guillaume Duchesne, an equity strategist at Fortis Private Banking in Luxembourg. "It´s able to keep passing on higher oil prices with surcharges and for the coming year competition should remain limited, so things look pretty favourable."